Identity theft is a term made up by banks and institutions who don't want to take responsibility for who they sign contracts with. Despite billions of profits they have every year.
Exactly. We should stop saying "Identity Theft" because that lets financial institutions off the hook. "Identity Theft" sounds like it is either your fault for being careless with your identity, or the thief's fault for stealing it. How about "Negligent Verification Fraud"? That makes it clear it is the fault of the bank. It is impersonation enabled by the bank's lax verification process.